AI Photo: VCG

China is in the midst of an artificial intelligence (AI) boom. The China Center for Information Industry Development, a public institution under China's Ministry of Industry and Information Technology, estimated that China's the generative AI market is expected to exceed 10 trillion yuan ($1.40 trillion) this year, China Media Group (CMG) reported. 

According to the data, the adoption rate of generative AI among Chinese enterprises has reached 15 percent. Notably, the manufacturing, retail, telecommunications and healthcare sectors have witnessed a surge in the adoption of generative AI technology.

By 2035, generative AI is expected to contribute nearly 90 trillion yuan in economic value globally, with China surpassing 30 trillion yuan, CMG reported.

The rapid development of generative AI market and the increasing adoption of AI by enterprises will have a significant impact on the overall digital economy, drive innovation, improve efficiency and lead to increased competitiveness and economic growth for China, Wang Peng, an associate research fellow from the Beijing Academy of Social Science, told the Global Times on Thursday.

Generative AI could further release $2 trillion worth of economic benefits in China each year, on the basis of the traditional AI and advanced analytics technologies, according to McKinsey & Co.

The just-concluded Central Economic Work Conference pointed out that it is essential accelerate the development of AI.

The year of 2024 is expected to bring promising developments in China's AI field, with a particular focus on the applications of generative AI technology, improvements in regulatory policies to ensure the responsible use of AI technology and data privacy protection, Wang said.

Chinese authorities issued an interim regulation on the management of generative AI services. The regulation, which went into effect on August 15, puts forward measures on boosting generative AI technology on the one hand, while stipulating basic norms for generative AI service providers on the other.

As per the regulation, China will encourage innovative applications of generative AI technology in various industries and fields, and will support industry organizations, enterprises, education and research institutes and other relative institutions to carry out collaboration in this regard.

Moreover, regulators will exercise classified and grading supervision on generative AI services, says the regulation, requiring service providers to fulfill the obligations of online information security, including protecting netizens' personal information, and preventing under-aged users from becoming addicted to such services. 

With technological advancements, generative AI is expected to be applied in more industries such as finance, education and transportation, Wang said.

There is also a need to enhance international cooperation in order to collectively drive the development and governance of AI, Wang added.